A crippling pilots' strike which has grounded more than 200 Iberia flights a day since Monday, has been called off, the airline confirmed today.

Some 60 flights were being reinstated today and services were expected to return to normal tomorrow. One London-Barcelona flight was operating today, but four services from London to Spain remained cancelled, an Iberia spokeswoman said.

Passengers can download a complete list of services that will not be running from the Iberia website.

"The strike has ended. We are working to restore normal activity. Today, there are 158 cancelled flights but tomorrow we should have a practically normal service," the spokeswoman added.

The strike ended when the Spanish carrier, which jointly markets some flights with British Airways under a code-sharing agreement, resolved a dispute with pilots' union SEPLA yesterday.

The industrial action was prompted by staff fears that the company's October launch of a new Barcelona-based low-cost airline, Catair, would result in lower wages and job losses.

"We gave them assurances that this will not happen," an Iberia spokesman said.

Iberia estimates that the strike action has cost them €5m per day, amounting to €20 million over the week.

Customers of both BA and Iberia, who were booked on affected flights between July 10 and July 16, are entitled to a refund or to reschedule their travel by July 31. Passengers were being advised to contact the airline or travel agent that they had used to book their original flights.

A British Airways spokeswoman said: "If passengers had booked through BA and were on Iberia flights, we put on an extra service a day to accommodate them."

Over 95% of BA passengers had been able to reach their destinations, she added.